J.D. Power and Associates are predicting hybrids and diesels will continue to gain market share By 2009, hybrids and diesels will make up 9% of U.S. auto sales.

Toyota will continue to dominate this marketplace, given their increased production capacity. Toyota has sold 70% of all new hybrid vehicles over the past two years. But the report is predicting that share will fall to 50% as other automakers release their models.

The article predicts that hybrids and diesels will reach 9% of U.S. auto sales by 2009, and Toyota Motor Corp. will continue to lead this category in sales. Thanks in large part to increased production capacity, more than 70% of all new hybrid sales in the past two years have been Toyotas, although that number is expected to decline to 50% by 2009, reflecting the growth of new models from other automakers.

The article is called "The Steady-But Slow-Rise of Hybrids and Diesels in the U.S. Auto Market." It was published March 22, 2007 as part of a special report on global automakers published on RatingsDirect, the real-time, Web-based source for Standard & Poor's credit ratings, research, and risk analysis, and in the April 4 issue of CreditWeek.

J.D. Powers is predicting a similar rise for diesels.

As gas prices rise, diesels seem a natural solution for the U.S.,especially for manufacturers with large operations in Europe, where diesel cars are already in large demand," says Kevin Riddell, manager at J.D. Power and Associates Automotive Forecasting. "For these carmakers, diesels provide a far more economical means than hybrids of improving CAFE averages. A vehicle with a modern diesel engine will have 30% better fuel economy than a comparable gasoline engine. Plus, advances have made modern diesel engines perform similarly to gasoline engines in terms of noise, filtration systems, and drive quality."